okay...now for my $.02...I have a 47" widescreen 1080i projection TV made by Panasonic. I bought it new in 2004. I also have a new Samsung 32" 1080p that I bought just to plug in my new PS3. Guess what?...The PS3, my modded xbox, my PS2, and my friend's 360 all look better on the projection TV. Biggest difference is in all of the words/numbers/basic graphics. They look smoother.
On the LCD you notice pixelation and rough edges. I am using HDMI to DVI on the PS3. Stock cable on the 360 and RGB composite cables on PS2 and XBOX. I am not that impressed with my PS3. It does look great, but I was expecting a lot more. We played Madden on all systems and the Xbox looked better than the 360. The PS3 trumped all, but not by much. You can easily change the color/contrast on any TV to get it to look it's best. Those screen shots in the first few threads can't be right. They were just that...low res screen shots. You can tell just by looking at the top logo and writing. None of the consoles show jaggies like that on my TV. Might have been a mediocre TV. Blue-Ray movies don't look that much better than regular DVD-9...If you have a good TV...guess what...It looks better.
Interesting side note...when I hooked up the PS3 using the RGB composite cables, the contrast changes dramatically. The PS2 looks better in composite than the PS3...clearly, the consoles are suited to perform best at their manufacturer's suggested settings. Personally, I didn't think the graphics could get much better...and they didn't. I'm not impressed. It's nice to have more detail, but great gameplay is great gameplay...It just depends on the titles. I plan on buying a Wii as soon as I can get my hands on one and my kids are anxious to play. They like the PS3, especially Motostorm (which you can download the demo), but they still prefer the xbox and the DS...mainly because of the titles. I'm not impressed with the sixaxis controller so far.
The controller feels too light without the rumble. I've played the Nintendo and I like it. Time will make all things better. The PS3 feels and acts more like a PC with the extra features and that's what I'm hoping to exploit with new things coming out. Browsing the internet on the PS3 is no fun at 1080i...it cannot replace the computer, but I'm hoping I can network it in so I can access my in home ftp server to stream media. For now the modded xbox still gets more use because all of its features. Hopefully, the future will change that. The next year should be very exciting!!!